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Online loan scammers have been stealing identities and robbing Australians of large sums of money.
The Western Australian government revealed that 13 people had reported losses of more than $25,000 in the past year as a result of online loan scams.
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Victims who applied for online loans were contacted by scammers who said their loans had been approved, subject to the payment of an upfront fee.
The state's commission for consumer protection, Anne Driscoll, said some of the scammers had stolen the identity of legitimate online money lenders, adding to the confusion of borrowers.
"Many of the victims have had their loan applications from traditional lenders rejected, so have widened their search online with the hope of getting a favourable response," Ms Driscoll said.
"Their delight at finally getting a personal or business loan application approved soon turns to disappointment and anger when they discover that they have been scammed.
"Money for fees and insurance that they have been asked to pay upfront have been lost and no finance is forthcoming."
Ms Driscoll said the scam is a recent variation of an advance fee fraud, and that people need to be aware of the new tactics being used by criminals.
"We recommend consumers only deal with licensed credit providers and ensure they are using official websites and email addresses of these registered companies, rather than replying to what may be a scam email, clicking on links in these emails or clicking on online ads which may take them to fake websites," she said.
[Related: Mortgage fraud: it's back!]
